Key Highlights

  • Net sales rose 2% to $962.6 million in the third quarter, from $943.4 million a year earlier.
  • Diluted EPS was $1.66, compared with $0.95 in the third quarter of 2025.
  • Operating income reached $109.6 million, or 11.4% of net sales, versus 7.1% a year ago.
  • Cash, cash equivalents and short-term investments totaled $229.6 million with no borrowings.
  • Full year 2026 diluted EPS guidance is $4.65 to $4.90, with the low end raised from $4.45.

Third-quarter sales edge up as international offsets a softer United States

Columbia Sportswear (NASDAQ:COLM), a multi-brand maker of outdoor, active and lifestyle apparel, footwear, accessories and equipment sold in 122 countries, reported third quarter 2026 results on October 29, 2026. Net sales increased 2% to $962.6 million from $943.4 million, also 2% in constant currency.

United States sales slipped 1% to $540.9 million, which the company tied to later shipments of Fall 2026 wholesale orders, partly offset by direct-to-consumer growth. Latin America and Asia Pacific rose 11%, Europe, Middle East and Africa rose 7%, and Canada fell 2%.

Wholesale was flat at $636.7 million, while direct-to-consumer grew 5% to $325.9 million. The Columbia Brand generated $826.2 million, up 3%, while Mountain Hardwear fell 17% to $23.3 million.

Margins and a missing Impairment charge lift EPS from $0.95 to $1.66

Gross Margin contracted 20 basis points to 49.8% of net sales. The company said that reflected accommodations to factory partners, partly offset by the benefit of IEEPA Tariff refunds previously received.

SG&A expenses were $375.6 million, or 39.0% of net sales, compared with 40.4% a year earlier. Operating Income was $109.6 million, against $67.4 million in the prior year quarter, which included $29.0 million of impairment charges tied to prAna and Mountain Hardwear.

Net income was $84.7 million, or $1.66 per diluted share, compared with $52.0 million, or $0.95. The company noted that the prior year impairments reduced diluted EPS by $0.46.

Nine-month figures reveal how much tariff refunds shaped the year

For the first nine months of 2026, net sales rose 1% to $2,356.0 million, flat in constant currency, while U.S. sales fell 5% to $1,283.4 million. Europe, Middle East and Africa grew 15%.

Gross margin expanded 220 basis points to 52.3%, including an approximate 230 basis point benefit from IEEPA tariff refunds, net of factory partner accommodations. Diluted EPS was $2.82 versus $1.53, and the company said the refund benefit added $0.85 to that figure.

Inventory climbs 11% while Buybacks and a $0.30 Dividend continue

Inventories increased 11% to $889.2 million from $800.4 million, mainly on in-transit goods from delayed Fall 2026 receipts and earlier production of Spring 2027 product. Net cash used in Operating Activities for the nine months was $280.5 million, compared with $333.4 million a year earlier.

The company repurchased 3,342,569 shares for $200.0 million in the nine months, leaving $226.5 million under its authorization. The board declared a quarterly dividend of $0.30 per share, payable on December 3, 2026 to holders of record on November 19, 2026.

Full-year guidance narrows upward, with fourth-quarter shipments the swing factor

The company now expects 2026 net sales of $3.46 billion to $3.50 billion, up 2.0% to 3.0%, against a prior range of $3.43 billion to $3.50 billion. Operating Margin is projected at 8.7% to 9.1%, and diluted EPS at $4.65 to $4.90, compared with $3.24 in 2025.

Fourth quarter net sales are guided to $1,108 million to $1,145 million, with diluted EPS of $1.85 to $2.10 versus $1.73 a year earlier. Operating Cash Flow guidance was cut to $230 million to $250 million from $290 million to $310 million, and management expects first half 2027 wholesale sales to grow in the mid-single-digit range.